Korean government ordered to pay Lone Star $216.5 million

Representatives of the Korean government and Lone Star Funds wait to pass through security at the International Centre for Settlement of Investment Disputes in Washington in May 2015. [YONHAP]

An international tribunal has ordered the Korean government to pay U.S. private equity firm Lone Star Funds $216.5 million in compensation.

The International Centre for Settlement of Investment Disputes delivered the ruling on Tuesday in response to a damages suit filed by Lone Star Funds against the Korean government in 2012.

Lone Star had filed for $4.68 billion in damages. The private equity firm claimed it was forced to pay unfair taxes and suffered losses due to the Korean government’s delay in approving a deal to sell a controlling stake in the now-defunct Korea Exchange Bank to HSBC.

Lone Star acquired the KEB stake for 1.38 trillion won ($1.03 billion) in 2003.

BY JIN MIN-JI [jin.minji@joongang.co.kr]